Private subsidized flats in pipeline

Wallis Wang

Homebuyers can purchase private subsidized flats at 65 percent of the market price in Tung Chung and Chai Wan in 2028-29 at the earliest under a pilot scheme inviting developers to build around 2,300 of the units on government land.

Secretary for Housing Winnie Ho Wing-yin said yesterday that authorities will set a 26-square-meter - 280 square feet - minimum size for the flats, with 70 percent of them not smaller than 34.8 sqm.

A minimum number of the smaller flats will be in place so developers will not build the larger ones only.

The eligibility of applicants of the new scheme will be the same as the Home Ownership Scheme, but authorities will not buy any unsold flats from the developers, Ho said.

"Private developers participating in the scheme must have a good design of flats and be responsible for the sales. The design and quality of the flats must cope with market demands to attract buyers," she said.

Private developers will also be required to employ an independent checker to conduct inspections of the flats to ensure their quality, Ho said.

Public tenders for the two sites - 1.4-hectare plot in Tung Chung Area 122 good for 1,600 units and a half hectare Chai Wan site on Cheung Man Road for 700 units - will be launched at the end of the year and early next year respectively.

Ho said the government will encourage private developers to apply for rezoning of their private lands to develop the subsidized flats. They will only need to pay one-third of the market land premium for developing residential units but the full market value for development for other purposes.

Authorities have considered various factors to come up with the 65 percent rate, balancing the public's expectations and the benefits of private developers, she said.

Ho believes the new scheme will be welcomed by people as the 65 percent rate is close to the 62 percent under the Home Ownership Scheme this year. As the housing price is stable, she said the new scheme will not have a huge impact on the private market.

The Hong Kong Housing Society said it supported the new scheme, adding it can help authorities build residential units faster and meet people's demands.

The society said it will provide assistance for people applying for the subsidized flats.

New World Development said it supports the scheme and will actively study to submit bids.

Real Estate Developers Association of Hong Kong's executive committee chairman Stewart Leung Chi-kin projected that most people buying flats in the Tung Chung site would be from the aviation industry, while the Chai Wan flats would be sold to the general public.

Leung said developers will submit bids if they can meet the government's requirements, and will carefully calculate the selling price of the flats and the land premium.

Vincent Cheung Kiu-cho, managing director of Vincorn Consulting and Appraisal, said the Chai Wan site will be more appealing to developers as the area is close to the MTR station and well-developed with various supporting facilities.

But Cheung also noted that the Tung Chung site will be within walking distance of the future Tung Chung East station.

Lawmaker Scott Leung Man-kwong from Kowloon West New Dynamic supported the new scheme, saying it can relieve housing pressure.

He urged the government to enhance supervision of private developers to make sure all housing projects can be completed on time.

wallis.wang@singtaonewscorp.com